Many businesses in British Columbia are facing challenges due to a malfunctioning app that handles employee tips, resulting in significant losses for both employers and employees.
David Duprey, owner of The Narrow Group, is among those impacted. For years, he used the app “Everyday Payments” to distribute tips to his staff. However, on Jan. 28, he discovered his digital wallet was empty, with $14,000 of his employees’ gratuities missing.
Despite his own financial setback, Duprey reimbursed his employees, emphasizing the critical nature of the lost funds for his business operations. The lack of communication and reimbursement from Everyday Payments has left many businesses in limbo.
This issue extends beyond British Columbia, with reports of affected establishments in Alberta, Ontario, and Nova Scotia. The situation is particularly severe in B.C., with losses exceeding millions of dollars.
The app is managed by Everyday People Financial Corporation and XTM Inc., Canadian financial technology companies based in Edmonton and Toronto. However, neither company has provided a satisfactory explanation for the missing funds.
Concerns about XTM’s financial stability have surfaced, with experts pointing out the company’s significant debt and declining share price. The Bank of Canada and law enforcement are investigating the matter, highlighting the seriousness of the situation.
Despite the challenges, Duprey remains hopeful about his business’s resilience but acknowledges the potential devastating impact on smaller establishments.